After beginning 2024 with “a $20 million commitment of capital,” web3 superfan and streaming network Tune.fm is said to have obtained an additional $50 million.
That significant raise was revealed in stories from crypto trades including Cointelegraph, which stated that Global Emerging Markets had put up the big tranche. At the time of writing, the New York City-based venture capital firm (a stakeholder in Events.com and other companies) did not appear to have issued a formal statement regarding their Tune.fm support.
However, according to the aforementioned publication, this current round brings the self-described “decentralized music streaming platform and music collectibles marketplace” to a total of $80 million in investor funding.
Aside from a stated desire to utilize the $50 million to generate liquidity for its JAM token – the digital currency that powers the Hedera-powered service – Tune.fm does not appear to have revealed its exact plans for the cash via social media. (Statements allegedly referring to today’s round appear to be identical to those issued during the January rise.)
In any case, when we last checked in, the startup was focusing on a global expansion, the creation of a mobile app, and major label license agreements. Tune.fm’s app is now available on both the Play Store and the App Store, and the firm is continuing to promote projects by Moroccan rapper CM Yassir as part of its international expansion efforts.
According to Tune.fm, these projects have the potential to generate “instant royalties” of “10-100X more than you can on Spotify or Apple Music” through on-platform streams right now. The company also touts its effectiveness as a promotional tool, as well as the revenue potential of its NFT marketplace.
Tune.fm claims that customers “get paid to play” advertised tunes, which are available “as lossless uncompressed masters.”
Especially since the per-stream royalty rate at top platforms is unlikely to increase very soon – among other things, growth is stronger in emerging regions with lower subscription and ad expenses – Tune.fm’s moves will be worth watching.
Furthermore, pricing hikes in competing services may make Tune.fm even more tempting, especially given the seeming potential for superfan-focused solutions to become the standard. Universal Music performers are now available on Hybe’s Weverse superfan app, Warner Music is set to launch its own platform for hardcore fans, and Spotify has announced that a more premium “Deluxe” tier is on its way.
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